What happened
An Urban Alchemy spokesperson said in an emailed statement to Community Impact that the nonprofit notified Austin officials after discovering the issue and terminated the employees responsible.
"We hold our entire team to the highest possible standards, and will never hesitate to take appropriate action when we fall short of those standards," the spokesperson said in the statement. "We will review any misreported [Homeless Management Information System] records and submit them for the next quarterly progress report to the city of Austin."
The records have since been corrected, according to the city memo.
What's next
HSO officials plan to enter into an emergency contract with Endeavors, which City Council will need to approve Oct. 9. The agreement would authorize Endeavors to operate the shelters through Sept. 30, 2026. HSO officials will begin the process of seeking a new operator for the shelters Oct. 1, 2026, according to the memo.
Endeavors currently operates HSO’s Marshalling Yard Temporary Emergency Shelter and Northbridge Shelter.
"HSO selected Endeavors for this emergency contract based on the organization’s demonstrated ability to rapidly hire and train staff for large-scale operations, its familiarity with HSO’s contracting requirements, and its strong track record in delivering quality services," the memo states.
Some background
Urban Alchemy first stepped up to manage ARCH after the departure of its longtime operator Front Steps in 2022, as previously reported by Community Impact. The city reported improved operations and client satisfaction at the central downtown shelter for men experiencing homelessness months after it came under Urban Alchemy's operation.
The California-based nonprofit then expanded its Austin presence by taking over the Eighth Street Women's Shelter. Austin officials bought the facility after The Salvation Army exited, and Urban Alchemy reopened its doors in December of 2023.
In 2024, Urban Alchemy partnered with Downtown Austin Alliance on street outreach efforts. That same year, the group opened an "oasis" space open to homeless community looking for a place to wash up, rest or even grab a coffee, according to previous Community Impact reporting.
"We are grateful for our years of partnership with the city of Austin and to the community and guests we served and impacted," an Urban Alchemy spokesperson said. "We gave thousands of guests a Four Seasons-like experience, helped thousands make more positive choices for their lives, and launched our innovative Oasis model to give vulnerable populations a place to belong and build a cleaner, safer, and more resilient community."
